Change Orders

[joshuacdrlk]

More questions for you guys, since your all so helpfull....Does anyone here charge a flat change order fee, if during the trim out you have completed some work and the homeowner changes their mind...I know you definitly charge for your work, but is there a general irritation charge you add on?

 

[mdshunk]

I think that's in some contract documents they say that every change order will involve, for instance, a $25 administrative fee. This is a fee that pretty much has to be in the original contract. You can't just spring it on them. That fee, in practice, may or may not be enforced depending on how much you like the customer.

 

[joshuacdrlk]

and thats exactly how I feel about it, it is bad to pick and choose, I recently had a customer that the GC allowed to do his own electrical design, including the switching....Needles to say it was out of control, there were like 10 single pole switches in the whole house..Well I start trim out, this guy has me separating Wall Sconces down the stairs and changing things to 3way and 4 ways, whole house is rope, There wasnt enough money in the world for that change, but you have to make the customer happy...Well with going on my own, I feel that I need to make this worth my while or not do it at all

 

[mdshunk]

...Well with going on my own, I feel that I need to make this worth my while or not do it at all

If you were giving any consideration to doing that change for free, forget it. If you were going to write up a change, but were considering tacking on an admin fee, just build it into the change price and don't list that as a line item, since your original contract likely doesn't permit that.

When a customer starts a comment with, "Can you...", your response should be, "Sure, let me work up a price on that and make up a change order".

 

[joshuacdrlk]

Thanks alot, the first boss was incredibly "soft"...So I tend to be the same way. But nice doesnt pay the bills

 

[mdshunk]

Thanks alot, the first boss was incredibly "soft"...So I tend to be the same way. But nice doesnt pay the bills

Sometimes a little goodwill can go a long way, but sometimes you need to run the hard line. Exactly when to employ each is something you need to learn for yourself. If you're doing a freebie, make sure you make a big deal song-and-dance out of the fact, and use it as sort of a selling point (even though the job was already sold and, in fact, you're doing the work). This way, if the changes continue to come, the customer will already be well aware that you did one for free, and now you're gonna charge. Some may say that this is poor advice, so use it judiciously, but it works well for me on occasion.

 

[joshuacdrlk]

Thanks again, sounds to me like you are running a great business for yourself, I try to be fair with everyone, I hear some real horror stories of contractors doing people wrong, so i try to be the guy who came in happy and grateful, but make sure when I leave that it was worth my time and effort, I learned a long time ago, a little kindness and fairness pays for itself..I appreciate everybody on the forum and their input, gives me a lot of needed direction

 

[iaov]

Sometimes a little goodwill can go a long way, but sometimes you need to run the hard line. Exactly when to employ each is something you need to learn for yourself. If you're doing a freebie, make sure you make a big deal song-and-dance out of the fact, and use it as sort of a selling point (even though the job was already sold and, in fact, you're doing the work). This way, if the changes continue to come, the customer will already be well aware that you did one for free, and now you're gonna charge. Some may say that this is poor advice, so use it judiciously, but it works well for me on occasion.

I agree Marc. I always write a contract that states wiring will be done to plan. I put in a :smile: provision stating that outlets are a 100 bucks more and fixturesare 150. I usualy don't charge them for all the extras but I make a big deal about the ones I don't at final billing time. The HO's are always happy to fork over the extra dough when they think they got a deal. The change orders are where I usually end up making a lot of extra money on a job. I learned early on about the propensity of HO's to hit you with the "While you're heres"

 

[growler]

I recently had a customer that the GC allowed to do his own electrical design, including the switching....Needles to say it was out of control, there were like 10 single pole switches in the whole house.

It's common enough for the homeowner to design the electrical or at least to have a say in the design.

It can be important to let the homeowner know that it's cheaper to get it right the first time because change orders take time and will be expensive.

When I see a bunch of single pole switches I question it before doing any work. That way the homeowner is aware from the start that this is not a good design. I have many question that I ask on a custom home to make sure the homeowner knows that options were offered and refused.

When they show up wanting to make changes they already know it's not going to be free or even cheap. If you are going to have trouble with a customer or builder it's better to have it before the job starts, Much easier to walk off without losing anything.